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Wednesday, March 25, 2015

The Price of
Car Insurance

There are a
wide range of factors that insurance companies consider when they price your
policy such as your age, gender, address, and car. Although you can’t do much
about where you live, or what age and gender you are, there are a number of
other things you can still do to bring down the costs of your car insurance.

Your car can
save you money on your insurance premium

Remember
that the maximum amount an insurer will pay out on a claim is up to the
agreed/market value of your car. This means that what type of car you have and
how you use it can save you money.

Cheap cars mean cheaper insurance because the value that your car is insured for is the most the
insurer will pay out.

Some cars are more
attractive to thieves than others and because they are more likely to be
stolen they will cost more to insure.

Cars with modifications
are more expensive to insure because their risk or value is harder to
determine. Also modifications that enhance the car's performance increase
the likelihood of an accident or make them more attractive to thieves.

Imported or unique cars
will cost more to cover because their cost of repair tends to be higher
especially if parts are harder to find or must be imported.

Mileage can affect your
costs because if you don’t drive your car very often you are minimizing
your risks of collision and thus claims. As a result you should be able to
get a cheaper price on insurance.

Reduce my
car insurance premium by reducing risk

As your
policy is priced on the perceived risk of insuring you and your car it makes sense
to do all you can to minimize this risk and in turn reduce your premium. Secure
parking will reduce the risk of theft, vandalism, flood, and storm damage
claims. A good driving record reduces the risk of you making a claim. Safety
and security devices installed will also reduce the risk of theft and damage.

Claim your
discounts

Insurers
will often reward you for your good driving records as well as experience on
the road. Some insurers also provide a discount for taking defensive or
advanced driving courses. Other discounts available include bundling policy
discounts, Eco-friendly discounts, family discounts and loyalty discounts.

Shop around
online for car insurance quotes

There are
numerous factors affecting the cost of your car insurance that the only way you
are going to get the best deal is to shop around. Even though most insurers use
similar risk factors to price their policies, an insurer’s own experience with
a vehicle model or demographic also plays a part in their pricing. For example
if they have paid out more claims on a type of vehicle they may apply a higher
risk factor to that vehicle than the next insurer would.

Don’t just renew your policy, read it and compare it because if your situation
has changed, you may be able to find a cheaper policy elsewhere. If you don’t
have the time or patience to call around and be asked to hold, comparing car
insurance quotes online is an alternative that is time efficient, and of
course, we have that service ready for you right here!

Others ways
to save

Pay your premiums
annually. The option of paying in installments comes at a cost so if
possible pay your premiums in a lump sum.

Adding other drivers to
your policy may be expensive. If you have young drivers in your family you
may consider letting them buy their own policy, after all they will need
to start their earning their driver rating at some point.